During the year, Belyk Paving Company had sales of $1,745,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $880,000, $470,000, and $385,000, respectively. In addition, the company had an interest expense of $195,000 and a tax rate of 21 percent. Ignore any tax loss carryforward provision and assume interest expense is fully deductible. The company paid out $370,000 in cash dividends. Assume net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. Calculate the firm's new long-term debt added during the year. Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Net new long-term debt
During the year, Belyk Paving Company had sales of $1,745,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $880,000, $470,000, and $385,000, respectively. In addition, the company had an interest expense of $195,000 and a tax rate of 21 percent. Ignore any tax loss carryforward provision and assume interest expense is fully deductible. The company paid out $370,000 in cash dividends. Assume net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. Calculate the firm's new long-term debt added during the year. Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Net new long-term debt
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:During the year, Belyk Paving Company had sales of $1,745,000. Cost of goods sold, administrative and selling expenses, and
depreciation expense were $880,000, $470,000, and $385,000, respectively. In addition, the company had an interest expense of
$195,000 and a tax rate of 21 percent. Ignore any tax loss carryforward provision and assume interest expense is fully deductible. The
company paid out $370,000 in cash dividends. Assume net capital spending was zero, no new investments were made in net working
capital, and no new stock was issued during the year. Calculate the firm's new long-term debt added during the year.
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Net new long-term debt
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